US business stockpiles jump 0.7 per cent in October, biggest gain since January - InfoNews

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US business stockpiles jump 0.7 per cent in October, biggest gain since January

In this Tuesday, Nov. 26, 2013, photo, Chris Busch, multichannel sales support manager at an Oklahoma City Best Buy store, moves inventory at the store in Oklahoma City, Tuesday, Nov. 26, 2013. The government reports how much U.S. businesses adjusted their stockpiles in October on Thursday, Dec. 12, 2013. (AP Photo/Sue Ogrocki)
December 12, 2013 - 7:12 AM

WASHINGTON - U.S. companies boosted their stockpiles at the fastest rate in nine months as their sales grew. The gain in restocking indicates businesses anticipated a healthy holiday shopping season.

The Commerce Department says business inventories increased 0.7 per cent in October, following a 0.6 per cent gain in September. Sales rose 0.5 per cent, above a 0.3 per cent gain the previous month.

The increase could signal better growth in the October-December quarter than some economists had anticipated. Greater restocking boosts growth because it requires more factory production.

Growth is still likely to slow from the July-September quarter's robust 3.6 per cent annual rate, half of which came from a jump in restocking.

But consumers appear to be spending more, a trend that will help keep the economy growing at solid pace.

News from © The Associated Press, 2013
The Associated Press

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